Littlefield reaches settlement with Texson Management Group

Published: Thursday, November 01, 2001

LINDA KANEAvalanche-Journal

A settlement has been reached between the city of Littlefield and Texson Management Group Inc. of Austin after disagreements arose last year over the construction of an $11 million juvenile detention center.

Texson was hired by the city to oversee construction of the project and to manage the facility.

In July 2000, as much as $1 million was unaccounted for in payments due subcontractors and vendors.

An audit showed that the city of Littlefield had paid its bills.

After the reports of funding discrepancies arose, the City Council fired Texson. The firing came two months after Texson took over management of the detention center.

City Attorney Nolan Greak said at the time that Texson misrepresented payment vouchers and was fired for breach of contract.

Texson later filed suit against Littlefield claiming the city didn't pay Texson for all its services. The city countersued claiming Texson owed it damages for finishing the project late and for deficiencies in providing specific equipment.

Texson's bankruptcy trustee showed that Littlefield owed Texson about $135,000. The city had put that money in an escrow account and interest caused it to grow to about $141,000.

The Littlefield City Council agreed Monday to pay Texson half that amount, $70,900, plus half the interest earned on the escrow account, according to the settlement agreement.

Pete Holzer, bankruptcy counsel for Texson, filed a motion with the U.S. Bankruptcy Court asking it to accept the settlement. A judge should make a decision in about 20 days and likely will approve it, Holzer said.